The best virtual data rooms come with features that allow users to browse and read documents. Table of contents, drag and drop capabilities as well as folder and underfolder structure, as well as search capabilities are all included. To ensure security, they offer the ability to grant granular permissions to file sharing and viewing (e.g. view only, editing and full uploading and downloading; fence view to prevent screen printing and unauthorised viewing remote data wiping and so on.).
A VDR should also offer advanced capabilities like document versioning and Q&A to speed up due diligence. This will ensure that projects are on track and ensure that they are completed. Some, such as FirmRoom take this a step further by implementing request management that synchronizes all diligence requests and communication in one place designed for buyers and sellers.
Lastly, a good VDR offers a custom dashboard that displays the most recent activities and alerts to keep everyone up-to-date. It should also include features that help speed up the process by eliminating the bottlenecks and ensuring that the distribution continues without interruption. This includes the complete list of participants as well as grouping by role or involvement in order to speed up the invitations process.
Ultimately, the goal of any data room is to provide all the data needed to make the right decision while keeping sensitive data from being in the hands of a thief. It is important to keep in mind that there’s no such thing as too much data- if you share more than is needed, investors might get distracted by irrelevant information or take decisions based on inaccurate or insufficient data.